Ownership Is Not A Must

by: Devora Witts

deciding whether to approve or not a personal loan. That's the reason why we can say that ownership is not an unavoidable requirement and that non-homeowner loans are widely available even for those with a less than perfect credit as long as their income allows them to afford the monthly payments.

Loans For Non-Homeowners

These loans are unsecured and specially meant for tenants though any non-homeowner can access them without problems. The main advantage of this kind of loan is its flexibility due to being designed for tenants which have a wide range of needs and incomes; you can find non-homeowner loans fit for every budget.

Interest Rate

The interest rate charged for this kind of loan is just a bit higher than secured personal loans. The difference is so insignificant that many homeowners apply for these loans too in order to avoid the risk of repossession and sleep with ease knowing their assets are safe. Also, the interest rate comes in two shapes: A variable interest rate which is always the lowest rate and a fixed interest rate which is a bit higher but stays unmodified over the whole life of the loan.

Other Characteristics

These loans also present certain flexibility when it comes to loan term. Since the needs of tenants are different and the loan term is closely related to the amount of the monthly installments, in order to keep them affordable the loan term can be easily modified and extended to keep the monthly payments as low as possible.

The loan amount is variable too; you can request almost any loan amount depending only on your credit score. Someone with a good credit score can get as much money with a non-homeowner loan as with a secured loan. A bad credit score will however, limit your ability to get large loan amounts due to the risk involved for the lender in such transactions.